Quick Answer
Crypto is not illegal for individuals, but it's unregulated.
- No specific laws regulate individual crypto possession, use, or trading.
- Banks and financial institutions are banned from handling crypto-related transactions.
Legal Status of Crypto in Lebanon
Cryptocurrency in Lebanon operates in a legal gray area; it is not explicitly illegal for individuals but remains unregulated and unrecognized by law. This ambiguity is a direct result of measures from regulatory bodies like the Banque du Liban (BDL) and the Capital Markets Authority (CMA), which have banned financial institutions from dealing in crypto. Consequently, while formal channels are blocked, peer-to-peer trading is widespread, with general anti-money laundering compliance under laws like Law No. 44 still being a key expectation overseen by the Special Investigation Commission (SIC).
Current Regulations
Lebanon lacks a specific legal framework for cryptocurrencies, placing them in a regulatory gray area. The primary rules come from financial authorities, with a 2013 Banque du Liban (BDL) notice warning banks and financial institutions about the dangers of cybercurrencies. This stance was reinforced by a 2018 Capital Markets Authority (CMA) announcement that prohibits licensed financial institutions from issuing, marketing, or trading digital currencies. These prohibitions effectively block formal financial channels but do not explicitly outlaw individual ownership or peer-to-peer trading, which continues in an unregulated environment.
Regulatory Authorities
Several authorities are involved in overseeing different aspects of cryptocurrency, from financial prohibitions to anti-money laundering enforcement.
- Banque du Liban (BDL): As Lebanon's central bank, the BDL prohibits banks and financial institutions from handling crypto-related transactions. It also issues warnings about the risks of digital currencies and provides AML/CFT guidelines.
- Capital Markets Authority (CMA): The CMA explicitly forbids licensed financial institutions from issuing, marketing, or trading cryptocurrencies for their own accounts or on behalf of clients. This prohibition is based on risks like high volatility and potential for criminal use.
- Special Investigation Commission (SIC): Acting as Lebanon’s Financial Intelligence Unit, the SIC investigates suspicious transactions, including those involving virtual assets. It has the authority to freeze assets and ensures compliance with AML/CFT obligations under laws like Law No. 44.
- Banking Control Commission (BCC): The BCC cooperates with the BDL and is noted for monitoring informal cryptocurrency operations. However, its capacity to enforce regulations in the largely unregulated P2P market is limited.
- High Council of Defence: This advisory body is involved in enhancing Lebanon's capacity to investigate cybercrime and cyberterrorism perpetrated through cryptocurrencies. It coordinates training and collaboration among various governmental institutions to tackle crypto-related security threats.
Historical Context
Lebanon's crypto regulation began in 2013 when the Banque du Liban (BDL) warned financial institutions against digital currencies and banned local card use for crypto purchases. This restrictive stance was solidified in 2018 when the Capital Markets Authority (CMA) prohibited licensed firms from all crypto activities. However, the 2019 financial crisis marked a significant shift in practice. With the banking system's collapse, citizens increasingly turned to crypto as a lifeline for savings and remittances. This pushed most activity into unregulated peer-to-peer markets, where authorities have shown practical tolerance despite the formal prohibitions. By 2023, the focus shifted towards building capacity to investigate crypto-related crimes.
Compliance Requirements for Businesses in Lebanon
Businesses in Lebanon must adhere to a strict set of compliance rules, primarily outlined in Law No. 44 of 2015, to combat money laundering and terrorist financing. These regulations mandate several essential checks and procedures for financial institutions and other designated non-financial businesses and professions (DNFBPs).
- Customer Due Diligence (CDD) & KYC: Institutions must verify the identity of all customers using reliable documents, identify the ultimate beneficial owner (UBO), and understand the purpose of the business relationship. This includes ongoing monitoring of transactions to detect unusual activity.
- Enhanced Due Diligence (EDD): For clients deemed high-risk—such as Politically Exposed Persons (PEPs), non-resident clients, or those involved in complex or high-value transactions—extra scrutiny is required.
- Suspicious Transaction Reporting (STR): Any transaction suspected of being related to illicit activities must be reported immediately to the Special Investigation Commission (SIC). There is no minimum monetary threshold for reporting; any suspicion warrants a report.
- Record-Keeping: All customer identification documents, transaction data, and due diligence records must be maintained. Law No. 44 specifies a minimum retention period of five years after the relationship ends, while upcoming amendments suggest this could extend to ten years for certain financial data.
- Screening & Internal Controls: Businesses are expected to screen clients against global watchlists (e.g., UN, EU, OFAC) and implement internal AML/CFT programs, which include risk assessments and staff training.
Why this matters for Cross-Border Payments
For businesses engaged in cross-border payments, Lebanon's regulatory landscape creates a significant bottleneck. The prohibition on banks and financial institutions handling crypto transactions effectively severs formal payment rails, forcing international dealings onto less secure and unregulated peer-to-peer (P2P) networks. This introduces major pain points, including a lack of reliable payment channels, heightened exposure to fraud, and immense difficulty in complying with AML/CFT obligations. Ultimately, these conditions can stifle international trade and investment by making it nearly impossible for legitimate companies to process crypto payments safely and legally.
How Lightspark Enables Compliant Crypto-Native Payments
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For regulated institutions, Lightspark provides tools that facilitate compliance. The platform offers features like audit-ready reporting and flexible custody options to help businesses meet their AML/CFT obligations under frameworks like Law No. 44. For instance, Grid Switch includes built-in features for travel rule and OFAC screening, empowering financial institutions to expand into new corridors while managing their regulatory requirements more effectively.
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Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- Chakrawarty, Shweta. "Cryptocurrency Regulation in Lebanon." Coinfomania, 19 June 2025, coinfomania.com/cryptocurrency-regulation-in-lebanon/.
- "CMA Prohibits Usage of Cryptocurrencies by Financial Institutions." Byblos Bank, www.byblosbank.com/common/economic-research-new/lebanon-this-week/lebanon-this-week-528/cma-prohibits-usage-of-cryptocurrencies-by-financial-institutions.
- Council of Ministers of Lebanon. Law No 44 of November 24, 2015 Fighting Money Laundering and Terrorist Financing. 24 Nov. 2015, www.bdl.gov.lb/CB%20Com/Laws%20And%20Regulations/Laws/Law_44_EN.pdf. PDF file.
- "Lebanon - Cryptocurrency Laws and Regulation." Freeman Law, freemanlaw.com/cryptocurrency/lebanon/.
- "Lebanon Works to Enhance Its Cryptocurrency Investigations." Fundación Para La Internacionalización De Las Administraciones Públicas (FIAP), 12 June 2023, www.fiap.gob.es/en/noticias/lebanon-works-to-enhance-its-cryptocurrency-investigations/.
- Mills, Liz. "How Crypto Helped Lebanon Navigate a Crisis." Crypto Council for Innovation, 31 May 2024, cryptoforinnovation.org/crypto-offers-lebanon-a-lifeline-in-face-of-continuing-financial-crises/.
- Team Sanction Scanner. "Anti-Money Laundering (AML) in Lebanon." Sanction Scanner, 12 Aug. 2025, www.sanctionscanner.com/aml-guide/anti-money-laundering-aml-in-lebanon-1096.
